Budget Update Archives - Page 2 of 7

Mar 18 2024

High-Income Child Benefit Charge Threshold Increased

By admin Budget Update, Child Benefit, HMRC, Potts & Co Accountancy & Business Advice News

The threshold for earnings above which you have to pay back some or all of your child benefit will be increased from 6 April 2024 with a full overhaul of the regime promised in April 2026. If you or your partner receive child benefit and your adjusted net income is…

Mar 18 2024

Two New Products For UK Savers

By admin British Savings Bonds, Budget Update, HMRC, ISA

Two new savings products have been announced, aimed at supporting growth of UK companies and encouraging a culture of saving. Individuals can currently deposit up to £20,000 each year into an individual savings account (ISA). This is a sensible move as any interest earned is tax-free. The annual limit is…

Mar 17 2024

Non-Dom Reforms

By admin Budget Update, HMRC, Non-Dom, Potts & Co Accountancy & Business Advice News

The remittance basis tax relief offered to non-UK domiciled individuals (non-doms) will be removed and replaced with a simpler residence-based regime from 6 April 2025. The new system will ensure that all UK residents who stay in the UK for over four years will pay the same tax on their…

Mar 16 2024

Furnished Holiday Lets Relief To Be Scrapped

By admin Budget Update, Capital Allowance, Capital Gains Tax, Furnished Holiday Lets (FHL), HMRC, Holiday Rentals, Income Tax, Potts & Co Accountancy & Business Advice News

Owners of furnished holiday lets will lose their entitlement to favourable income tax, capital gains tax and capital allowances as the FHL scheme is abolished. If you own a property that you rent out on a short-term basis for holiday rentals, subject to certain qualifying conditions, you may benefit from…

Mar 15 2024

VAT Registration Threshold Raised

By admin Budget Update, HMRC, Potts & Co Accountancy & Business Advice News, VAT

The earnings threshold above which businesses must register for and start charging VAT has been increased. Effective from 1 April 2024, the taxable turnover above which a business is required to register and account for VAT will be increased from £85,000 to £90,000. This is the first change to the…

Mar 14 2024

National Insurance Rates Cut Again

By admin Budget Update, HMRC, National Insurance, Potts & Co Accountancy & Business Advice News

The headline news from the Spring Budget was further cuts to national insurance contributions (NIC) of 2% each for self-employed taxpayers and employees. The main rate of primary Class 1 NIC paid by employees on earnings between £12,570 and £50,270 per year will be cut from 10% to 8% from…

Mar 29 2023

Allowances Frozen And Cut

By admin Budget Update, Capital Gains Tax, Child Benefit, Dividends, HMRC, Personal Tax, Potts & Co Accountancy & Business Advice News, VAT

It is easy to forget the hidden tax rises which are created by frozen and cut allowances, so here is a quick reminder. The tax-free personal allowance will be frozen at £12,570 for six years from 2021- 22 to 2027-28 and the related marriage allowance is fixed at £1,260 for…

Mar 28 2023

How To Cope With Corporation Tax Rise

By admin Budget Update, Corporation Tax, HMRC, National Insurance, Potts & Co Accountancy & Business Advice News

The Budget confirmed that the main rate of corporation tax will rise from 19% to 25% on 1 April 2023 but the small profits tax rate will stay at 19% where the company's profits do not exceed £50,000. The Chancellor failed to highlight that the effective marginal rate of corporation…

Mar 27 2023

Pension Savings Lifetime Cap Removed

By admin Budget Update, HMRC, Pensions, Potts & Co Accountancy & Business Advice News

The pensions lifetime allowance effectively caps the amount that can accumulate in a person's pension fund and be extracted with favourable tax treatment. This covers all contributions paid in and any organic growth in the fund. Where the lifetime allowance (currently £1,073,100) is exceeded the pensioner must pay a lifetime…

Mar 26 2023

Pension Allowances Increased

By admin Budget Update, HMRC, Pensions, Potts & Co Accountancy & Business Advice News

The Chancellor announced the relaxation of three different pension allowances to encourage older taxpayers to remain an active part of the workforce or to return to employment if they have retired early. The pensions annual allowance provides a cap on the total contributions a taxpayer and their employer can pay…

Budget Update